j:4R3 , 

^■3/(   The   Banking    Laws 
of  Illinois 

Compiled  by  W.  H.  Kniffin,  Jr. 


Compliments  of  the 

Drovers  Deposit  National  Bank 

Chicago 


UC-NRLF 


B    3    12D    777 


GIFT   OF 


^^^m>^ji^  ®aJpe,<i,Jc  oyV^Wv^ 


v>uc:^.o.^t> 


Digitized  by  the  Internet  Archive 

in  2008  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/bankinglawsofillOOillirich 


COMPLIMENTS  OF 


United  States  Depositary 


CAPITAL  and  SURPLUS 


$1,000,000.00 


Quick  Service 

and  careful  attention 

given  to  all 

business  entrusted  to  us 

Accounts 

of  Banks  and  Bankers 
Merchants,  Corporations 
and  Individuals  invited 

Ajcts 

as  Reserve  Agent  for 
National  Banks 


The  Banking  Laws 
of  Illinois 


Compiled  by 

W.  H.  KNIFFIN,  Jr. 


Copyright,   1911,   Bankers  Publishing  Co.,   N,   T. 


'"r^^j^^ 


Statement  of   Condition 

June  7,  1911 

RESOURCES 

Loans  and  Discounts       -        -  $5,627,329.36 

Overdrafts        -        -        .        .  1,741.39 

United  States  and  other  aondi  743,348.56 

Cash  and  due  from  Banks    '  -  3,764,815.76 

'       '  '  $10,137,235.07 

$600,000.00 

443,233.07 

441,600.00 

2,935.24 

8,649,466.76 

$10,137,235.07 


LIABlLIllES 
Capital  Stock  paid  in       -        - 
Surplus  and  Profits 
Nat'l  Bank  Notes  Outstanding 
Reserved  for  Taxes 
Deposits  ----- 


Banking  Laws  of  Illinois 


STATE  BANKS 

ORGAN IZA-  ^^  *^^  ratification  of  this  Act 
TiON  AND  by  a  vote  of  the  people  in  EC- 
management  ^oj.dance  with  the  Constitution 
of  this  State^  (the  Act  was  ratified  as  herewith 
given),  it  shall  be  lawful  to  form  banks  and 
banking  associations,  as  hereinafter  provided, 
for  the  purpose  of  discount  and  deposit,  buying 
and  selling  exchange  and  doing 
POWERS  a  general  banking  business,  ex- 

cepting the  issuing  of  bills  to 
circulate  as  money,  and  such  banks  or  banking 
associations  shall  have  the  power  to  loan  money 
on  personal  and  real  estate  security  and  to  ac- 
cept and  execute  trusts.     (Section  1.) 


247114 


When  any  association  of  persons 
APPLICATION  desire  to  avail  themselves  of  the 
AUDITOR,  provisions  of  this  Act  they  may 

organTze^  ^Pply  to  the  Auditor  for  per- 
mission to  organize,  stating 
their  place  of  business,  the  amount  of  capital 
and  name  under  which  they  desire  to  organize 
and  the  time  for  which  such  association  shall 
continue,  which  statement  shall  be  under  their 
hands  and  seals,  and  acknowledged  before  some 
officer  authorized  by  law  to  acknowledge  deeds; 
and  the  Auditor  shall  issue  them  a  permit  to 
organize.  But  no  permit  shall  be  issued  to 
more  than  one  association  of  the  same  name; 
and  all  persons  or  associations  formed  under 
this  Act  shall  have  their  capital  stock  divided 
into  shares  of  one  hundred  dollars  each. 
(Section  2.) 

SUBSCRIP-  ^^  ^^^^  ^^  ™^y  ^  after  receipt 

TION   TO  of   authorization,  books   of   sub- 

STOCK 

ELECTION  OF    scription    to    the    capital    stock 

vcmNG^'^^'       ™^y   ^^   opened,   and   when  the 

capital    stock    shall    have    been 

fully    subscribed   for,    a    meeting   of    the    sub- 


scribers  to  the  capital  stock  of  such  associa- 
tion shall  be  called  (each  subscriber  having  had 
at  least  three  da^'s'  notice)  for  determination 
of  the  number  and  election  of  directors  to  serve 
as  managers  for  one  year  and  until  their  suc- 
cessors are  elected.  And  no  director  shall  be 
elected  unless  he  shall  have  received  votes  rep- 
resenting at  least  a  majority  of  the  shares  of 
the  association;  and  the  voting  may  be  done 
by  person  or  by  proxy,  and  at  such  election 
each  subscriber  or  stockholder  shall  have  the 
right  to  vote  for  the  number  of  shares  owned 
or  subscribed  by  him  for  as  many  persons  as 
there  are  directors  to  be  elected,  or  to  cumulate 
such  shares  and  give  one  candidate  as  many 
votes  as  the  number  of  directors  multiplied  by 
the  number  of  his  shares  of  stock  shall  equal 
or  to  distribute  them  on  the  same  principle 
among  as  many  candidates  as  he  shall  deem 
proper.      (Section  3.) 

The    directors    so    elected    may 
OF  OFFICERS     Proceed  to  organize  by  the  elec- 
tion of  one  of  their  number  as 
president  and  may  appoint  the  necessary  offi- 


cers  and  employees  and  fix  their  salaries  to 
carry  on  the  business  of  the  bank  or  associa- 
tion and  make  by-laws  (not  inconsistent  with 
this  Act)  for  the  government  of  the  bank  or 
association;  and  each  director  shall  take  and 
BY-LAWS  subscribe  to  an  oath  such  as  the 

OATH   OF  Auditor      shall      prescribe,      of 

fealty  to  the  bank  or  association 
of  which  he  is  director,  and  that  he  will,  so  far 
as  the  duty  devolves  on  him,  diligently  and  hon- 
estly administer  the  aflfairs  of  such  bank  or 
association,  and  will  not  knowingly  violate  or 
willingly  permit  to  be  violated  any  of  the  pro- 
visions of  this  Act;  and  that  he  is  the  owner 
in  good  faith,  and  in  his  own  right  of  the  num- 
ber of  shares  of  stock  required  by  this  Act; 
and  that  same  is  not  hypothecated  or  in  any 
way  pledged  as  security  for  any  loan  or  debt. 
Such  oath  subscribed  by  the  director  making  it 
and  certified  by  a  proper  officer  authorized  to 
administer  oaths,  shall  be  immediately  trans- 
mitted to  the  Auditor,  and  shall  be  filed  and 
preserved  by  him  in  his  office.     The  directors 

8 


shall  cause  to  be  kept  suitable  books  of  record 
of  all  the  transactions  of  the  bank  or  associa- 
tion, and  shall  furnish  to  the  Auditor  lists  of 
the  stockholders  and  copies  of  any  other  records 
the  Auditor  may  require.  And  there  shall  be 
an  annual  meeting  of  the  stockholders  for  the 
election  of  directors  each  year  on  the  first 
Monday  in  January,  unless  some  other  date 
shall  be  fixed  by  the  by-laws  of  the  association. 
Any  omission  to  elect  directors  shall  not  impair 
any  of  the  rights  and  privileges  of  the  associa- 
tion or  of  any  person  in  any  way  interested, 
but  the  existing  directors  shall  hold  office  until 
their  successors  are  elected  and  qualified,  as  in 
such  cases  may  be  by  by-laws  provided.  Vacan- 
cies may  be  filled  by  a  two-thirds  vote  of  the 
remaining  directors. 

Every  director  of  any  bank  or 
TiONS  FOR  association  organized  under  the 
ME^^iN^S^'        provisions  of  this  Act  must  own 

in  his  own  right,  free  of  any 
lien  or  incumbrance,  at  least  ten  shares  of  the 
capital  stock  of  such  bank  or  association  of 
which  he  is  a  director.    Any  director  who  ceases 

9 


to  be  the  owner  of  ten  shares  of  the  capital 
stock  of  such  bank  or  association,  or  who  be- 
comes in  any  form  disqualified,  shall  therefor 
vacate  his  place  as  such  director.  The  direc- 
tors of  any  bank  or  association  organized  under 
the  provisions  of  this  Act  shall  hold  regular 
meetings  at  least  once  each  month  and  there 
shall  be  present  a  quorum,  as  may  be  prescribed 
by  the  by-laws  of  such  bank  or  association,  ap- 
proved by  the  Auditor  of  Public  Accounts. 

Any  officer,  director  or  em- 
STATEMENTS  ployce  of  any  bank  or  associa- 
tion organized  under  the  pro- 
visions of  this  Act  and  who  shall  wilfully  and 
knowingly  subscribe  to  or  make,  or  cause  to  be 
made,  any  false  statement  with  intent  to  de- 
ceive any  person  or  persons  authorized  to  ex- 
amine into  the  affairs  of  such  bank  or  associa- 
tion, upon  conviction  thereof,  shall  be  punished 
by  imprisonment  of  not  less  than  one  year  or 
more  than  ten  years.     (Section  4.) 

When  the  directors  have  organ- 

EXAMINATION    .       ,  .  u-  r  r    i.1,- 

BY  AUDITOR      izcd,  as  m  section  tour  or  this 

opetTinc?  ^^^'    ^^^    *^^   capital   stock    of 

such  association  shall  have  been 

aU  fully  paid  in  and  record  of  the  same  laid  be- 

10 


fore  the  Auditor,  he  shall  by  himself,  or  some 
competent  person  of  his  appointment,  make  a 
thorough  examination  into  the  affairs  of  such 
association  and  if  satisfied  the  authorized  cap- 
ital has  been  paid  in  and  that  the  association 
has  the  full  amount  dedicated  to  the  business, 
including  proposed  surplus,  if  any,  and  when 
they  pay  into  the  Auditor's  office  the  reasonable 
expenses  of  such  examination,  he  shall  give 
^gP^lPj^^^g  them  a  written  or  printed  cer- 
OF  AUTHOR-  tificate,  under  seal,  authorizing 
'^^   '^  them   to   commence   the  business 

designated  in  section  one  of  this  Act.  And  said 
certificate  and  the  permit  issued  in  accordance 
therewith,  duly  certified  by  said  Auditor,  shall 
be  filed  and  recorded  in  the  office  for  the  re- 
cording of  deeds  in  the  county  where  such  bank 
is  organized,  and  the  original  or  a  certified 
copy  thereof  shall  be  evidence  in  all  courts  of 
the  existence  and  authority  or  said  corporation 
to  do  business.  Upon  the  recording  of  said 
certificate  and  permit  said  bank  shall  be  deemed 
fully  organized  and  may  proceed  to  business. 
The  Auditor  may  in  his  discretion,  withhold 


11 


the  issuing  of  the  said  certificate  authorizing 
the  commencement  of  business  when  he  is  not 
satisfied  as  to  the  personal  character  and  stand- 
ing of  the  officers  or  directors  elected  or  ap- 
pointed in  accordance  with  sections  three  and 
four  of  this  Act;  or  when  he  has  reason  to  be- 
lieve that  the  bank  is  organized  for  any  pur- 
pose other  than  that  contemplated  by  this  Act. 
(Section  5.) 

Every  stockholder  in  anv  bank 
ERS'  or  banking  association  organized 

list'o'f^'  under  the  provisions  of  this  Act 
STOCKHOLD-  shall  be  individually  responsible 
PILED  and   liable  to   its   creditors   over 

and  above  the  amount  of  stock 
by  him  or  her  held  to  an  amount  equal  to  his 
or  her  respective  shares  so  held  for  all  its  lia- 
bilities accruing  while  he  or  she  remains  such 
stockholder.  It  is  hereby  made  the  duty  of 
the  president  and  cashier,  within  thirty  days 
after  organization,  to  file  in  the  office  of  the 
recorder  of  deeds  of  the  county  in  which  said 
bank  is  located,  a  certified  list  of  all  the  orig- 
inal stockholders,  giving  the  number  of  shares 

12 


of  stock  held  by  each,  and  thereafter  a  certifi- 
cate of  all  transfers  of  stock,  not  later  than 
ten  days  after  such  transfer.  No  transfer  of 
stock  shall  operate  as  a  release  of  liability  pro- 
vided in  this  section.     (Section  6.) 

REPORTS  ^^^  ^^^   ^^^  persons   and  asso- 

AND  ciations    organizing    under    the 

SUPERVISION      p,„^i3i<,„,    %i     this      Act      shall 

make  to  the  Auditor  a  report  according  to  the 
form  which  may  be  prescribed  by  him,  verified 
by  oath  or  affirmation  of  the  president  or  cash- 
ier of  such  association,  which  report  shall 
j^gpQPyg  ^Q  exhibit  in  detail  and  under  ap- 
AUDITOR  propriate    heads    the    resources 

^hrIe^^^'^^  and  liabilities  of  such  bank  or 
PENALTY  association  before  the  commence- 

ment of  business  on  the  morn- 
ing of  any  day  he  may  choose;  and  he  shall  call 
for  such  reports  at  least  once  every  three 
months  of  each  year  and  the  officers  of  said 
banks  shall  transmit  the  same  to  the  Auditor 
within  five  days  after  receiving  call  for  the 
same;  and  any  bank  failing  to  make  and  trans- 
mit  such   report,   or   to   comply   with   any   pro- 


13 


visions  of  this  Act,  shall  be  subject  to  a  penalty 
of  one-hundred  dollars  for  each  day  after  five 
days  that  such  report  is  delayed  beyond  that 
time.  And  he  shall  cause  such  report  to  be 
published  at  the  expense  of  such  bank  in  some 
newspaper  published  in  the  city  or  town  where 
such  bank  is  located;  or  if  no  newspaper  is  pub- 
lished in  such  town,  then  in  the  nearest  news- 
paper to  such  town.  Every  such  quarterly  re- 
port shall  be  accompanied  with  a  fee  of  five 
dollars  to  defray  the  expense  of  examining  the 
same  and  preparing  it  for  publication.  (Sec- 
tion 7.) 

YEARLY  "^^^  Auditor  as  often  as  he  shall 

EXAM  IN  A-  deem  necessary   or  proper,  and 

at  least  once  in  each  year,  shall 
appoint  a  suitable  person  or  persons  to  make  an 
examination  of  the  affairs  of  every  bank  estab- 
lished under  the  provisions  of  this  Act,  which 
person  shall  not  be  a  stockholder  or  officer  or 
employee  of  any  bank  which  he  may  be  di- 
rected to  examine,  and  who  shall  have  power  to 
make  a  thorough  examination  into  all  the  af- 
fairs of  the  bank,  and  in  so  doing  to  examine 


14 


any  of  the  officers  or  agents  or  employees 
thereof  on  oath,  and  shall  make  a  full  and  de- 
tailed report  of  the  condition  of  the  bank  to 
the  Auditor;  and  the  bank  shall  not  be  subject 
to  any  other  visitorial  power  than  such  as  may 
be  authorized  by  this  Act,  except  such  as  are 
vested  in  the  several  courts  of  law  and  chan- 

COMPENSA-  ^^^y-  ^^  ^^^^y  person  ap- 
TiON   OF  pointed   to  make   such  examina- 

EXAMINERS         f.  i     „  •  r  ■,. 

tion  shall  receive  for  his  ser- 
vices at  the  rate  of  ten  dollars  for  each  day  by 
him  employed  in  such  examination,  and  two 
dollars  for  each  twenty-five  miles  he  shall  nec- 
essarily travel  in  the  performance  of  his  duty, 
which  shall  be  paid  to  them  by  the  bank 
examined.      (Section  8.) 

Associations  organized  under  this 
ESTATE,  Act    shall    be    bodies    corporate 

LIMITATIONS     ^"^   politic    for   the   period   for 

which  they  may  be  organized, 
may  sue  and  be  sued,  may  have  a  common  seal 
which  they  may  alter  or  renew  at  pleasure,  may 
own,  possess  and  may  carry  as  assets  the  real 
estate  necessary  in  which  to  do  a  banking  busi- 

15 


ness,  and  siich  other  real  estate  to  which  they 

may  obtain  title  in  the  collection  of  debts,  but 

shall   not   carry   in   the   assets   any   real   estate 

except  the  banking  house  for  a  period  of  more 

than   five   years   after   acquiring  title  to   same. 

(Section  9.) 

.  *N » ^.*  The  total  liabilities  to  any  asso- 

LOANS,  •   i.-  r  £ 

LIMITATIONS     sociation   01    any   person   or   of 
RESTRICTIONS  ^^^    corporation     or     firm     for 

money  borrowed  including  in  the 
liabilities  of  a  company  or  firm  the  liabilities 
of   the    several    members    thereof,   shall    at   no 

time  exceed  fifteen  per  cent,  of 
OF   LOANS         the  amount  of  the  capital  stock 

of  such  association  actually  paid 
in  and  unimpaired  and  fifteen  per  cent,  of  its 
unimpaired  surplus  fund. 

Provided,  however,  that  the  total  liabilities  of 
any  such  person,  company  or  firm  shall  at  no 
time  exceed  thirty  per  cent,  of  the  amount  of 
capital  actually  paid  in:  And,  provided,  fur- 
ther, that  undivided  profits  shall  not  be  con- 
strued as  a  part  of  the  surplus ;  but  the  discount 
of    bills    of    exchange    drawn    in    good    faith 

16 


against  actually  existing  values,  and  the  dis- 
count of  commercial  or  business  paper  actually 
owned  by  the  person  negotiating  the  same,  shall 
not  be  considered  as  money  borrowed. 
VIOLATIONS  Every  such  loan  made  in  viola- 
REMEDIES,  '  tion  of  the  provisions  hereof 
LIABILITIES  gjj^jj  y^^  ^^^  ^^^  payable  ac- 
cording to  its  terms,  and  the  remedy  for  the 
recovery  of  any  money  loaned  in  violation  of 
the  provisions  hereof,  or  for  the  enforcement 
of  any  agreement,  collateral  or  otherwise,  made 
in  connection  with  any  such  loan,  shall  not  be 
held  to  be  impaired,  affected  or  prohibited  by 
reason  of  such  violation,  but  such  remedy  shall 
exist  notwithstanding  the  same.  But  every 
director  of  any  such  association  who  shall  vio- 
late, or  participate  in,  or  assent  to  such  viola- 
tion, or  who  shall  permit  any  of  the  officers, 
agents  or  servants  of  the  association  to  violate 
the  provisions  hereof,  shall  be  held  liable  in  his 
personal  and  individual  capacity  for  all  dam- 
ages which  the  association,  its  stockholders  or 
any  other  person  shall  have  sustained  in  con- 
sequence of  iuch  violation. 

17 


It  shall  not  be  lawful  for  any 
OFFICERS  bank    to    loan    to    its    president 

or  to  any  of  its  vice-presidents 
or  its  salaried  officers  or  employees,  or  to  cor- 
porations or  firms  controlled  by  them,  or  in  the 
management  of  which  any  of  them  are  actively 
engaged,  until  an  application  for  such  loan 
shall  have  been  first  approved,  both  as  to  secu- 
rity and  amount,  by  the  board  of  directors. 
(Section   10.) 

Banks  or  banking  associations 
STOCK,  may    be    organized    under    the 

uqui"dation  provisions  of  this  Act  in  all 
cities,  towns,  and  villages  with 
a  minimum  capital  stock  according  to  the  popu- 
lation of  such  cities,  towns,  and  villages,  as 
follows : 

In  all  cities,  towns   and  villages   of  not  ex- 
ceeding   five    thousand    inhabit- 

MINIMUM  i-i-i.  V      a  i.1,  J 

CAPITAL  ants,     01     twenty-nve    thousand 

dollars. 
In  all  cities,  towns  and  villages  of  over  five 
thousand  inhabitants  and  less  than  ten  thousand 
inhabitants,  of  fifty  thousand  dollars. 


18 


In  all  cities,  towns  and  villages  of  ten  thou- 
sand inhabitants  and  less  than  fifty  thousand 
inhabitants,  of  one  hundred  thousand  dollars. 

In  all  cities,  and  towns  of  fifty  thousand  in- 
habitants or  more,  of  two  hundred  thousand 
dollars. 

IMPAIRMENT      Should  the  capital  stock  of  any 
OF  bank   organized   under   this   Act 

become  impaired,  the  Auditor 
shall  give  notice  to  the  president  to  have  the 
impairment  made  good  by  assessment  of  the 
stockholders  or  a  reduction  of  the  capital  stock 
ASSESSMENT  °^  such  bank,  if  the  reduction 
should  not  bring  the  capital  be- 
low the  provisions  of  this  section;  and  if  the 
capital  stock  of  said  bank  shall  remain  im- 
paired for  thirty  days  after  notice  by  the 
Auditor,  he  shall  have  power,  and  it  is  hereby 
made  his  duty,  to  enter  suit  against  each  stock- 
holder in  the  name  of  the  People  of  the  State 
of  Illinois,  for  the  use  of  said  bank,  for  his  or 
her  pro  rata  proportion  of  such  impairment, 
and  when  collected  shall  pay  over  the  amount 
thereof  to  said  bank,  and  the  judgment  in  such 

19 


case  shall  be  for  the  amount  claimed  with  all 
costs  and  reasonable  attorney's  fees^  which  fees 
shall  be  fixed  by  the  court;  or,  if  it  appears 
from  the  reports  made  to  the  Auditor  under  this 
Act,  or  from  any  examination  made  by  or  on 
behalf  of  the  Auditor,  that  the  conditions  of 
any  bank  organized  under  this  Act  are  such 
that  the  impairment  cannot  be  made  good,  or 
that  the  business  of  any  such  bank  is  being  con- 
ducted in  an  illegal,  fraudulent  or  unsafe  man- 
ner, he  may,  in  his  discretion,  without  having 
taken  the  steps  provided  in  this  section  to  make 
good  the  impaired  capital  stock,  through  the 
Attorney  General,  file  a  bill  in  the  circuit  court 
of  the  county  in  which  said  bank  is  located,  in 
the  name  of  the  People  of  the  State  of  Illinois 
against  said  bank  and  its  stockholders  for  the 

dissolution    of    the    corporation 
DISSOLUTION,  jr.  .    .  ..  J     P 

RECEIVER  a^^d  tor  an  mj unction,  and   lor 

the    appointment    of    a    receiver 

for  the  winding  up  of  the  affairs  of  the  bank. 

And  said  court,  upon  presentation  of  said  bill, 

and  upon  being  made  satisfied  that  the  capital 

stock  of  said  bank  has  become  impaired  to  such 


20 


an  extent  that  it  cannot  be  made  good,  or  that 
such  bank  is  being  conducted  in  an  illegal, 
fraudulent  or  unsafe  manner,  shall  immediately 
appoint  a  competent  and  disinterested  person 
as  such  receiver,  and  shall  determine  and  fix 
his  bonds  and  shall  prescribe  his  duties.  And 
said  cause  shall  proceed  as  other  cases  in  equity. 
And  no  bill  shall  be  filed  nor  proceedings  com- 
menced in  any  court  for  the  dissolution  or  for 
the  winding  up  of  the  affairs  or  for  the  ap- 
pointment of  a  receiver  for  any  such  banking 
corporation  on  the  grounds  of  insolvency  or  im- 
pairment of  the  capital  stock  of  such  banking 
corporation  or  upon  the  ground  that  such  bank 
is  being  conducted  in  an  illegal,  fraudulent  or 
unsafe  manner,  except  in  the  name  and  by  the 
authority  of  the  Auditor  of  Public  Accounts, 
represented  by  the  Attorney  General.  ^\Tien 
it  shall  be  ascertained,  in  the  course  of  the  ad- 
ministration of  the  estate  of  a  bank  in  the  hands 
of  a  receiver  that  the  assets  of  the  bank  are  in- 
sufficient to  discharge  the  entire  liability  of 
such  bank  to  its  creditors,  and  when  the  amount 
of  such  deficiency  is  determined,  the  court  may, 


21 


in  its  discretion,  direct  the  re- 
ment'^of'  ceiver  to  proceed  to  enforce  the 

STOCK-     ^  liability   of   the   stockholders   to 

LIABILITY  creditors,    provided     in    section 

six  of  this  Act;  and  when  so 
directed,  such  receiver  shall  have  the  power,  and 
it  shall  be  his  duty,  to  take  such  action,  by  suit 
or  otherwise,  as  the  court  may  direct,  to  enforce 
such  liability  for  the  benefit  of  the  creditors  and 
to  disburse  to  creditors  the  amounts  collected 
thereon,  in  the  same  manner  as  disbursements 
are  made  to  creditors  of  the  assets  of  the  bank. 

Such  receiver  shall  file  with  the  Auditor  a  copy 
of  each  report  which  he  makes  to  the  court 
appointing  him  in  order  that  the  said  Auditor 
may  have  at  his  command  a  complete  record  of 
all  State  institutions  whose  business  has  been 
so  liquidated. 

At  any  time,  whenever  a  majority  in  num- 
ber and  amount  of  the  creditors  of  any  such 
bank  or  association,  after  any  such  receiver 
shall  have  been  appointed,  shall  petition  the 
court  for  the  appointment  of  any  person  nomi- 
nated by  them  as  receiver,  who  is  a  reputable 

22 


person  and  elector  of  the  county  in  which  said 
bank  or  association  is  located,  it  shall  be  the 
duty  of  the  court  to  make  such  appointment, 
and  all  the  rights  and  duties  of  its  predecessors 
shall  at  once  devolve  upon  such  appointee. 
(Section  11.) 

Whenever  the  board  of  direct- 
T?otf^'"'°^  ors,  managers  or  trustees,  of 
CHANGE   OF       any      corporation      having      any 

NAME,  u       1  •  •   i.-  u 

PLACE   OF  bankmg     powers,     existing     by 

CHAN^cfEs'  IN  virtue  of  any  general  or  special 
MANAGE-  law   of   this    State,   or   any   cor- 

How  MADE  poration  with  banking  powers 
hereafter  organized  under  the 
provisions  of  this  Act  may  desire  to  change  the 
name,  to  change  the  place  of  business,  to  in- 
crease or  decrease  the  capital  stock,  to  increase 
or  decrease  the  number  of  directors,  managers 
or  trustees,  or  to  consolidate  such  corporation 
with  any  other  corporation  having  banking 
powers  which  may  hereafter  exist,  they  may 
call  a  special  meeting  of  the  stockholders  of 
such  corporation  for  the  purpose  of  submitting 
to  a  vote  of  such  stockholders  the  question  of 

28 


such  change  of  name,  change  of  place  of  busi- 
ness, increase  or  decrease  of  number  of  direc- 
tors, managers  or  trustees,  increase  or  decrease 
of  capital  stock,  or  consolidation  with  some 
other  corporation,  as  the  case  may  be:  Provided, 
that  in  changing  the  name  of  any  corporation 
under  the  provisions  hereof,  no  name  shall  be 
assumed  or  adopted  by  any  corporation  organ- 
ized under  the  laws  of  this  State,  without  the 
consent  of  such  other  corporation,  and  that  in 
no  case  shall  the  capital  stock  be  diminished  to 
the  prejudice  of  the  creditors  of  such  corpora- 
tion, or  the  number  of  directors,  managers  or 
trustees  be  reduced  to  less  than  five,  or  in- 
creased to  more  than  eleven. 

Such  special  meeting  shall  be 
MEETINGS  called  by   delivering  personally, 

or  by  depositing  in  the  postoffice 
at  least  thirty  days  before  the  time  fixed  for 
such  meeting,  a  notice  properly  addressed  to 
each  stockholder,  signed  by  a  majority  of  said 
directors,  managers  or  trustees,  stating  the 
time,  place  and  object  of  such  meeting.  A 
general  notice  of  the  time,  place  and  object  of 

24 


such  meeting  shall  also  be  published  for  three 
successive  weeks  in  some  newspaper  printed  in 
or  nearest  to  the  county  in  which  the  principal 
business  office  of  said  corporation  is  located. 

At  any  such  meeting  stockhold- 

VOTING  i.       •  u 

ON   SAME  ers    may   vote    m    person   or    by 

proxy,  each  stockholder  being 
entitled  to  one  vote  for  each  share  of  stock 
held  by  him,  and  votes  representing  two-thirds 
of  all  the  stock  of  the  corporation  shall  be 
necessary  for  the  adoption  of  the  proposed 
change  of  name,  place  of  business,  number  of 
directors,  managers  or  trustees,  amount  of  cap- 
ital stock,  or  consolidation  with  some  other 
company. 

At   any   reffular   meeting,   or   at 

CERTIFICATE      .v       .•  j       i  -n    j     • 

OF  STOCK-  the  time  and  place  specmed  in 
CONS^ent'  ^^^^  notice  of  a  special  meeting 

called  for  that  purpose,  said 
propositions,  or  any  of  them,  may  be  submitted 
to  a  vote,  and  if  it  shall  appear  that  two-thirds 
of  all  the  votes  represented  by  the  whole  stock 
of  such  corporation  are  in  favor  of  the  proposi- 
tions, or  any  of  them  so  submitted,  a  certificate 

25 


thereof,  verified  by  the  affidavit  of  the  presi- 
dent, and  under  seal  of  the  corporation,  shall 
be  filed  in  the  office  of  the  Auditor,  and  a  like 
certificate  filed  for  record  in  the  office  of  the 
recorder  of  deeds  of  the  county  where  the  prin- 
cipal business  office  of  such  corporation  is  lo- 
cated; and  upon  the  filing  of  such  certificates 
the  changes  proposed  and  voted  for  at  such 
meeting,  as  to  name,  place  of  business,  increase 
or  decrease  of  capital  stock,  or  number  of  di- 
rectors, managers,  or  trustees,  or  consolidation 
with  some  other  company,  shall  be  and  is  here- 
by declared  accomplished,  in  accordance  with 
the  said  vote  of  the  stockhold- 
BANKS  ers:       And,    provided,     further, 

th?S^act"''°  that  any  corporation  with  bank- 
ing powers  availing  itself  of  or 
accepting  the  benefits  of,  or  formed  under  this 
Act,  and  all  corporations  with  banking  powers 
existing  by  virtue  of  any  special  charter  or  gen- 
eral law  of  this  State,  shall  be  subject  to  the 
provisions  and  requirements  of  this  Act  in  every 
particular,  as  if  organized  under  this  Act. 
Such    corporation    shall,    upon    the    filing    of 

26 


said  certificate,  cause  to  be  published  in  some 
newspaper  in  or  nearest  to  the  county  in  which 
their  principal  office  is  located,  a  notice  of  such 
changes  of  organization  for  three  successive 
weeks. 

Such  chanee  of  name,  place  of 

RIGHTS  OF  V       .  .^  J    ^  r 

CREDITORS  business,  increase  or  decrease  or 
IMPAIRED  capital    stock,    increase    or    de- 

crease of  number  of  directors, 
managers  or  trustees,  or  consolidation  of  one 
corporation  with  another,  shall  not  affect  suits 
pending  in  which  such  corporations  or  corpora- 
tion shall  be  parties;  nor  shall  such  changes  af- 
fect causes  of  action,  nor  the  rights  of  persons 
in  any  particular,  nor  shall  suits  brought 
against  such  corporation  by  its  former  name  be 
abated  for  that  cause.     (Section  12.) 

All  corporations  with  banking 
T?or?^'''°^  powers  consolidating  as  pro- 
PROCEEDINGS  vided  in  section  twelve  shall  for- 
FORWARDED  Ward  to  the  Auditor  the  com- 
plete proceedings  of  their  con- 
solidation, a  list  of  the  stockholders  and  such 
other  records  as  the  Auditor  may  require,  when 

27 


the  Auditor  shall  proceed  as  provided  in  sec- 
tion five  of  this  Act  in  regard  to  the  organiza- 
tion of  new  banks,  and  until  he  shall  so 
proceed,  and  such  consolidated  corporation 
shall  comply  with  all  the  provisions  of  such 
section,  it  can  not  begin  business.     (Section  13.) 

In  all  cases  where  any  corpora- 
tkJ'n'^o'f^  tion   having   any    banking   pow- 

CHANGES  ers,     existing     under     and     by 

PRIOR   ACT        virtue  of  any  general  or  special 

laws  of  this  State,  has,  prior  to 
the  passage  of  this  Act,  changed  its  name  or  its 
place  of  business,  or  increased  or  decreased  its 
capital  stock,  or  the  number  of  its  directors, 
managers,  or  trustees,  in  the  manner  provided 
by  an  Act  of  the  General  Assembly  of  this 
State,  entitled,  "An  Act  to  provide  for  chang- 
ing the  names,  for  changing  the  place  of  busi- 
ness, for  increasing  or  decreasing  the  capital 
stock,  for  increasing  or  decreasing  the  number 
of  directors,  and  for  the  consolidation  of  in- 
corporated companies,"  approved  and  in  force 
March  26,  1872,  such  change  or  changes  are 
hereby  ratified  and   confirmed   and  made  valid 


and  legal  in  all  respects  as  if  made  in  pur- 
suance of  the  provisions  of  this  Act.  (Sec- 
tion 14.) 

DEPOSITS  ^^y    association    organized    un- 

WITH  der  this  Act,  or  any  corporation 

AUDITOR  M-t     1        1  •                                                J 

FOR  With    banking   powers   organized 

PUFip'oSE^"^^  in  pursuance  of  any  general  or 
special  law  of  this  State,  or  any 
consolidated  corporation  with  banking  powers 
as  provided  for  by  this  Act,  on  depositing  with 
the  Auditor  an  amount  of  money  equal  to  the 
whole  amount  of  debts  and  demands  against  it, 
including  the  expenses  of  this  proceeding,  may 
determine  its  affairs,  distribute  its  assets  among 
its  stockholders,  resign  its  charter  or  certificate 
of  incorporation,  and  close  up  its  business,  by  a 
resolution  passed  at  a  meeting  of  its  stockhold- 
ers called  for  such  purpose.  The  Auditor 
PUBLICATION  ^^^^^  cause  a  copy  of  such  reso- 
OF  lution   to   be   published   in   some 

TO  newspaper  published  in  the  city 

CLAiivfs^^^'        ^^   village   where   such   bank   or 
corporation  is  located;  or  if  no 
newspaper  shall  there  be  published,  then  in  the 

29 


newspaper  nearest  to  such  city  or  village,  and 
the  Auditor  shall  in  such  publication  also  give 
notice  that  the  notes  and  demands  against  such 
bank  or  corporation  will  be  redeemed  by  him, 
and  if  any  outstanding  notes  or  other  demands 
are  not  presented  in  one  year,  such  bank  may 
deposit  with  the  Auditor  or  elsewhere,  under 
his  direction,  and  subject  to  his  order,  on  in- 
terest, a  sum  sufficient  to  meet  such  outstanding 
demands,  which  when  presented  to  the  Auditor, 
shall  be  paid  by  him  out  of  such  sum,  and  after 
six  years  from  the  day  on  which  the  publica- 
tion of  the  dissolution  was  first  made,  the 
Auditor  shall  return  to  the  stockholders,  to  be 
among  them  distributed^  the  remainder  of  any 
sum  so  deposited. 

COMPENSA-  '^^^  Auditor  shall  be  entitled  to 
TION    OF  two  per  cent,  of  all  money  paid 

out  by  him  under  the  provisions 
of  this  section,  where  the  amount  so  paid,  on 
account  of  any  one  bank  or  corporation,  shall 
not  exceed  five  thousand  dollars,  and  one  per 
cent,  after  that.      (Section  15.) 


30 


TRUST  COMPANIES 

Any  corporation  which  has  or 
POWERS  shall  be  incorporated  under  the 

general  incorporation  laws  of 
this  State,  being  an  Act  entitled  "An  Act  con- 
cerning corporations/'  and  all  amendments 
thereof,  for  the  purpose  of  accepting  and  ex- 
ecuting trusts,  and  any  corporation  now  or  here- 
after authorized  by  law  to  accept  or  execute 
trusts,  may  be  appointed  assignee  or  trustee  by 
deed,  and  executor,  guardian  or  trustee  by  will, 
and  such  appointment  shall  be  of  like  force  as 
in  case  of  appointment  of  a  natural  person. 
(Section  1,  Trust  Company  Act.) 

Whenever    application    shall    be 

COURT    MAY  J      .  V,         i.    •      1.V      ci.    1. 

APPOINT  made  to  any  Court  in  this  htate 

COMPANY  ^^^  *^^  appointment  of  any  re- 

RECEIVER,         ceiver,   assignee,   guardian,   con- 

GUARDIAN,  /  i.  J  •   1.      i. 

ETC.  servator,  executor,  administrator 

or  other  trustee,  it  shall  be  law- 
ful for  such  court  to  appoint  any  such  corpora- 


31 


tion  as  such  trustee,  receiver,  assignee,  guardian, 
conservator,  executor  or  administrator:  Pro- 
vided, any  such  appointment  as  guardian  or  con- 
servator shall  apply  to  the  estate  only,  and  not 
to  the  person. 

DEPOSITORY  ^"y  ^^"y*  having  appointed  and 
FOR  COURT  having  iurisdiction  of  any  re- 
FUNDS  °  1     .    . 

ceiver,    executor,    admmistrator, 

conservator,  guardian,  assignee  or  other  trustee, 
upon  the  application  of  such  officer  or  trustee, 
or  upon  the  application  of  any  person  having 
an  interest  in  the  estate  administered  by  such 
officer  or  trustee,  after  such  notice  to  the  other 
parties  in  interest  as  the  court  may  direct,  and 
after  a  hearing  upon  such  application,  may 
order  such  officer  or  trustee  to  deposit  any 
moneys  then  in  his  hands,  or  which  may  come 
into  his  hands  thereafter,  and  until  the  further 
order  of  said  court,  with  any  such  corporation 
and  upon  deposit  of  such  money,  and  its  re- 
ceipt and  acceptance  by  such  corporation,  the 
said  officer  or  trustee  shall  be  discharged  from 

32 


further  care  or  responsibility  therefor.  Such 
deposit  shall  be  paid  out  only  upon  the  orders 
of  said  court. 

Whenever  in  the  judgment  of 
BONDS   OF  any  court  having  jurisdiction  of 

ASSIGNEE,'  any  estate  in  process  of  admin- 

ETC,     HOW  ....  V 

REDUCED  istration    by    any    assignee,    re- 

ceiver, executor,  administrator, 
guardian,  conservator  or  other  trustee,  the  bond 
required  by  law  of  such  officer  shall  seem  bur- 
densome or  excessive,  upon  application  of  such 
officer  or  trustee,  and  after  such  notice  to  the 
parties  in  interest  as  the  court  shall  direct,  and 
after  a  hearing  on  such  application,  the  said 
court  may  order  the  said  officer  or  trustee  to  de- 
posit with  any  such  corporation,  for  safe  keep- 
ing, such  portion  of  all  of  the  personal  assets  of 
said  estate  as  it  shall  deem  proper,  and  there- 
upon, said  court  shall,  by  an  order  of  record, 
reduce  the  bond  to  be  given,  or  therefor  given 
by  such  officer  or  trustee,  so  as  to  cover  only  the 
estate  remaining  in  the  hands  of  said  officer  or 


33 


trustee,  and  the  property  as  deposited  shall 
thereupon  be  held  by  such  corporation  under  the 
orders  and  directions  of  said  court.  (Section  2, 
Trust  Company  Act.) 

Such  corporation  shall  not  be 
GIVE   BOND       required    to    give    any   bond   or 

security  in  case  of  any  appoint- 
ment hereinbefore  provided  for,  except  as  in 
hereinafter  provided,  but  shall  be  responsible 
for  all  investments  which  shall  be  made  by  it 
of  the  funds  which  may  be  entrusted  to  it 
for  investment  by  such  court,  and  shall  be  fur- 
ther liable  as  natural  persons  in  like  positions 
now    are,    and    as    hereinafter    provided.      The 

amount  of  money  which  any 
LIMITATIONS  ,  ».-         \    ^^    x. 

AS  TO  LOANS    such   corporation   shall   have   on 

deposit  at  any  time  shall  not 
exceed  ten  times  the  amount  of  its  paid  up  cap- 
ital and  surplus,  and  its  outstanding  loans  shall 
not  at  any  time  exceed  said  amount.  (Section 
S,  Trust  Company  Act.) 
INTEREST  Such  company  shall  pay  interest 

upon  all  moneys  held  by  it  by 
virtue  of  this  Act,  at  such  rate  as  may  be  agreed 

34 


upon  at  the  time  of  its  acceptance  of  any  such 
appointment,  or  as  shall  be  provided  by  order 
of  the  court.     (Section  4,  Trust  Company  Act.) 

Such  corporations  shall  be  en- 
SAT  I ON^'  titled   to    and    shall   be    allowed 

proper  compensation  for  all  the 
services  performed  by  them  under  the  provisions 
of  this  Act,  but  such  compensation  shall  not 
exceed  that  allowed  to  natural  persons  for  like 
services.     (Section  5,  Trust  Company  Act.) 

Each  company  in  all  cities  and 
5m?2^'"''^  towns  of  100,000  inhabitants  or 

AUDITOR  FOR  more,  before  accepting  any  such 
CREDITORS        appointment     or     deposit     shall 

deposit  with  the  Auditor  of 
Public  Accounts  the  sum  of  $200,000,  and  each 
company  in  all  cities  and  towns  of  less  than 
100,000  inhabitants  shall  deposit  with  the 
Auditor  of  Public  Accounts  the  sum  of  $50,000, 
said  deposit  to  be  for  the  benefit  of  the  credit- 
ors of  said  company,  and  to  consist  of  bonds 
of  the  United  States  or  municipal  bonds  of  this 
State,  or  in  mortgages   on  improved  and  pro- 

35 


ductive  real  estate  in  this  State,  being  first  liens 
thereon,  and  the  real  estate  being  worth  at  least 
twice  the  amount  loaned  thereon.  Bonds  and 
EXCHANGE  securities  so  deposited  may  be 
OF  exchanged,    from   time   to   time, 

SECURITIES  o      ^  y 

for  other  securities  receivable  as 
aforesaid.  Said  bonds  of  the  United  States  or 
municipal  bonds  of  this  State  to  be  registered 
in  the  name  of  said  Auditor  officially,  and  all 
said  securities  to  be  subject  to  sale  and  transfer 
and  to  the  disposal  of  the  proceeds  by  said 
Auditor  only  on  the  order  of  a  court  of  com- 
petent jurisdiction  and  as  hereinafter  provided 
in  section  18.  So  long  as  the  company  so  de- 
positing shall  continue  solvent,  such  company 
shall  be  permitted  to  receive  from  said  Auditor 
the  interest  or  dividends  on  said  deposit:  Pro- 
vided, however,  that  when  it  shall  appear  to  the 
Auditor  of  Public  Accounts  from  the  annual  re- 
port of  any  such  company  that  the  value  of  the 
personal  property  and  the  cash  held  and  pos- 
sessed by  such  company  by  virtue  of  the  pro- 
visions of  this  Act,  and  any  amendment  thereof, 

36 


exceeds  ten  times  the  amount  of 
SECURITIES  the  deposit  aforesaid,  he  shall 
WH^E^N'sAfo  require  said  companies,  if  in 
DEPOSIT  cities   or   towns    of    100,000   in- 

INCREASED  habitants  or  more  to  forthwith 
DHVilNISHED       increase  said  deposit  to  the  sum 

of  $500,000  in  such  securities, 
and  in  all  cities  and  towns  of  less  than  100,000 
inhabitants  to  forthwith  increase  the  said  de- 
posit to  the  sum  of  $125,000  in  such  securities. 
And  whenever  it  shall  appear  to  the  Auditor 
of  Public  Accounts  that  the  amount  of  personal 
property  and  cash  so  held  by  any  such  company 
has  been  reduced  below  ten  times  the  value  of  its 
original  deposit  above  provided  for,  and  said 
company  is  not  in  any  default  in  its  duties  and 
obligations  hereunder,  he  shall  allow  said  com- 
pany to  reduce  its  said  deposits  to  the  sum  orig- 
inally required  in  this  section  by  the  withdrawal 
of  such  additional  deposits  until  such  time  as  an 
increase  in  its  holdings  shall  again  require  an 
additional  deposit  as  hereinbefore  provided. 
No  corporation  authorized  to  accept  and  exe- 
cute  trusts   shall   either   directly   or   indirectly, 

37 


through  any  officer,  agent  or  employee  of  such 

corporation,  certify  to  any  bond,  note  or  other 

obligation    to    evidence    debt,    secured    by    any 

trust  deed  or  mortgaffe  upon  or 
COMPLIANCE  .  t.       t  ' 

WITH   ACT         accept     any     trust     concerning 

property    located    wholly    or    in 

part  in  this  State  without  complying  with  said 

Act  and  the  amendments  thereto;  and  any  trust 

deed  or  mortgage  given  or  taken  in  violation  of 

the  provisions  of  said  Act  and  the  amendments 

thereto   shall   be  null   and   void.      (Section    6, 

Trust  Company  Act.) 

DEPOSITS  IN      When  any  part  of  such  deposit 

MORTGAGES       is  made  in  bonds  and  morteaffes 

TO     BE  o    o 

ACCOMPANIED  i*  shall  be  accompanied  by  full 
^^f!-®^^*^^*^'  abstracts  of  titles  and  searches, 
and  shall  be  examined  and  ap- 
proved by  or  under  the  direction  of  the  Auditor. 
The  fees  for  an  examination  of  title  by  counsel, 
to  be  paid  by  the  company  making  the  deposit, 
shall  not  exceed  $20  for  each  mortgage,  and  the 
fee  for  each  appraiser  not  exceeding  two,  be- 
sides expenses,  shall  be  $5  for  each  mortgage. 
(Section  7,  Trust  Company  Act.) 

38 


AUTHORI2A-      ^^  ^^^^^  '^ot  be  lawful  for  any 
TlON    BY  such    company    to    accept    any 

trust  or  deposit  as  hereinbefore 
provided,  after  the  passage  of  this  Act,  with- 
out first  procuring  from  the  Auditor  of  Public 
Accounts  a  certificate  of  authority  stating  that 
such  company  has  complied  with  the  require- 
ments of  this  Act  in  respect  to  such  deposit. 
(Section  8,  Trust  Company  Act.) 

Such  companies  shall  file  with 
AND  the    said    Auditor,    during    the 

f  ioNs"^^  month  of  January  of  each  year, 

a  statement,  under  oath,  of  the 
condition   of   such   company   on  the   thirty-first 
day  of  December  next  preceding,  exhibiting  the 
following  items  in  the  following  form: 
^,_._.   ,  (a)     The    assets    of    said    com- 

YEARLY 

REPORT,  pany,  specifying: 

of^aIsets"^      First— The       description       and 
market    value,    or    as   nearly    as 
may    be,    of    the    real    estate    owned    by    such 
company. 

Second — The   amount   of   cash   on   hand   and 


39 


deposits  in  banks  to  the  credit  of  said  company, 
specifying  in  what  banks  such  deposits  are. 

Third — The  amount  of  cash  in  the  hands  of 
agents  and  in  the  course  of  transmission. 

Fourth — The  amount  of  loans  secured  by 
mortgages  and  bonds^  constituting  a  first  lien 
on  real  estate,  on  which  there  shall  be  less  than 
one  year*s  interest  due  or  owing,  and  the 
amount  of  such  interest. 

Fifth — The  amount  of  such  loans  on  which 
there  shall  be  more  than  one  year's  interest  due 
or  owing,  and  the  amount  of  such  interest. 

Sixth — The  amount  due  the  company  on 
which  judgments  have  been  obtained. 

Seventh — The  amount  of  stocks  and  bonds  of 
this  State,  and  of  the  United  States,  of  any  in- 
corporated city  of  this  State,  and  of  any  other 
stocks  and  bonds  owned  by  such  company, 
specifying  the  amount,  number  of  shares,  and 
the  par  and  market  value  of  each  kind  of  stock 
or  bonds. 

Eighth — The  amount  loaned  upon  the  pledges 
of  securities,  with  a  statement  of  the  securities 


40 


so  held  by  such  company,  and  the  par  and  mar- 
ket value  of  such  securities. 

Ninth — The  amount  of  all  other  assets  of 
such  company,  including  accrued  interest  not 
enumerated  above. 

(b)      The     liabilities     of     such 
STATEMENT      company,  specifying: 
LIABILITIES,      First— The  capital  stock  paid  in. 

STATEMENT         c  J       rr.u  i  u       J 

OF  TRUSTS  Second — Ihe  surplus  on  hand. 
Third — The     undivided     profits. 

Fourth — The  deposits  held  by  such  company. 

(c)  A  list  and  brief  description  of  the 
trusts  held  by  such  company,  the  source  of  the 
appointment  thereto,  and  the  amount  of  real 
and  personal  estate  held  by  such  company  by 
virtue  thereof,  except  that  mere  mortgage 
trusts  wherein  no  action  has  been  taken  by  such 
company,  shall  not  be  included  in  such  state- 
ment. The  said  report  shall  also  be  in  such 
form  and  contain  such  statements,  returns  and 
information,  as  to  the  affairs,  business  condi- 
tion, and  resources  of  the  corporation,  as  the 
said  Auditor  of  State  may,  from  time  to  time. 


41 


prescribe  or  require.  (Section  9,  Trust  Com- 
pany Act.) 

Such  report  shall  be  verified  by 

VERIFICATION    .,  «./     ,.       r,  ^    . ,  ^ 

OF  REPORT,  the  athdavit  ot  one  or  the  man- 
l^'^'J^^I^  aging   officers,   and    two   of   the 

directors  or  trustees  of  said 
company,  who  shall  also  state  in  such  affidavit 
that  they  have  examined  the  assets  and  books 
of  said  company  for  the  purpose  of  making 
said  report.  Any  false  swearing  in  regard  to 
such  report  shall  be  deemed  perjury,  and  shall 
be  subject  to  the  punishments  prescribed  by 
law  for  such  offiense.  (Section  10,  Trust  Com- 
pany Act.) 

The  Auditor  of  Public  Accounts 
tk)NS^from'  ^^  hereby  authorized  and  em- 
AUDITOR,  powered     to     address     any     in- 

ADDITIONAL  •    •         .  i. 

reports  quiries  to  any  such  company,  or 

the  officers  thereof,  in  relation 
to  its  doings  and  condition,  or  any  other  matter 
connected  with  its  affairs,  and  it  shall  be  the 
duty  of  any  company  or  person  so  addressed, 
to  promptly  reply  in  writing  to  such  inquiries. 
The  Auditor  may  also  require  reports  from  any 

4S 


such  corporation  at  any  time  he  may  deem  de- 
sirable.    (Section  11,  Trust  Company  Act.) 
YEARLY  -^^    shall    be    the    duty    of    said 

EXAMINA-  Auditor,     annually,    either    per- 

sonally or  by  one  or  more  com- 
petent persons  to  be  appointed  by  him,  to  visit 
and  examine  every  such  corporation  in  this 
State.  The  Auditor  shall  also  have  power,  in 
like  manner,  to  examine  any  such  corporation 
whenever,  in  his  judgment,  it  may  be  deemed 
necessary  or  expedient.  The  said  Auditor  and 
every  such  examiner  shall  have  power  to  ad- 
minister an  oath  to  any  person  whose  testimony 
may  be  required  on  any  such  examination,  and 
to  compel  the  appearance  and  attendance  of 
any  such  person  for  the  purpose  of  examina- 
tion, by  summons,  subpoena  or  attachment,  in 
the  manner  now  authorized  in  respect  to  the  at- 
tendance of  persons  as  witnesses  in  the  courts 
of  record  in  this  State;  and  all  books  and 
papers  which  may  be  deemed  necessary  to  ex- 
amine by  the  Auditor  or  examiner  so  appointed 
shall  be  produced,  and  their  production  may  be 
compelled    in    like    manner.      The    expense    of 

43 


every  examination,  if  any,  shall 
EXAMINATION  ^e  paid  by  the  corporation  ex- 
amined, in  such  amount  as  the 
Auditor  shall  certify  to  be  just  and  reasonable: 
but  whenever  such  special  examination  shall  be 
made  by  the  Auditor  in  person,  or  by  one  or 
more  of  the  regular  clerks  in  his  department, 
no  charge  shall  be  made  except  for  necessary 
traveling  and  other  actual  expenses.  On  every 
examination,  inquiry  shall  be  made  as  to  the 
condition  and  resources  of  the  corporation  gen- 
erally, the  mode  of  conducting  and  managing 
its  affairs,  the  action  of  its  directors  or  trustees, 
the  investment  of  its  funds,  the  safety  and  pru- 
dence of  its  management,  the  security  afforded 
to  those  by  whom  its  engagements  are  held, 
and  whether  the  requirements  of  its  charter  and 
of  the  laws  have  been  complied  with  in  the 
administration  of  its  affairs.  The  result  of 
CERTIFICA-  ^^^^  examination  shall  be  certi- 
TION   OF  fied  by  the  examiners  or  one  of 

EXAMINATION    ^j^^^^    ^^^^    ^^^     ^^^^^^^    ^^    ^j^^ 

corporation  examined,  and  the  result  of  all  the 
examinations   during  the  preceding  two  years, 

44 


shall  be  embodied  in  the  report  of  the  Auditor 
required  by  this  Act  to  be  submitted  to  the 
Legislature.  Such  report  shall  give  date  to 
which  such  report  refers,  the  amount  of  capital 
returned  by  each  of  said  corporations,  the 
whole  amount  of  its  debts  and  liabilities,  the 
total  sum  of  its  resources,  and  such  other  in- 
formation as  such  Auditor  may  deem  useful. 
(Section  12,  Trust  Company  Act.) 
PUBLICATION  "^^^  ^^^^  Auditor  shall  cause  a 
OF  proper    abstract    of    the    state- 

ments of  assets  and  liabilities 
reported  under  section  nine  of  this  Act,  to  be 
published  once  in  each  week  for  three  con- 
secutive weeks,  in  two  newspapers  of  general 
circulation,  the  one  printed  in  the  city  of 
Springfield,  and  the  other  in  the  county  seat  of 
the  county  wherein  the  principal  office  of  the 
respective  company  is  located,  such  publication 
to  be  paid  for  by  said  company.  (Section  l6, 
Trust  Company  Act.) 

Whenever  it  shall  appear  to  the 

UNLAWFUL  .1     A      -,..  PI, 

BANKING  said  Auditor  from  any  such  ex- 

amination   or    report,    that    any 


45 


such  corporation  has  committed  any  violation  of 
law,  or  is  conducting  its  business  in  an  unsafe 
or  unauthorized  manner,  he  shall,  by  an  order 
under  his  hand  and  seal,  direct 
OF^'u'vw^'^^  the  discontinuance  of  such  il- 
INSTITUTION  legal  and  unsafe  or  unauthor- 
PROCEEDINGS  l^ed  practices,  and  strict  con- 
formity with  the  requirements 
of  the  law,  and  with  safety  and  security  in  its 
transactions;  and  whenever  any  such  corpora- 
tion shall  refuse  or  neglect  to  make  any  such 
report  as  is  hereinbefore  required,  or  to  comply 
with  any  such  order  as  aforesaid,  or  whenever 
it  shall  appear  to  the  Auditor  that  it  is  unsafe 
or  inexpedient  for  any  such  corporation  to  con- 
tinue to  transact  business,  or  that  extraordinary 
withdrawals  of  money  are  jeopardizing  the  in- 
terest of  remaining  depositors,  or  that  any 
trustee  or  officer  has  abused  his  trust  or  been 
guilty  of  misconduct  or  malversation  in  his  offi- 
cial position,  injurious  to  the  institution,  or  that 
it  has  suffered  a  serious  loss  by  fire,  burglary, 
repudiation  or  otherwise,  he  shall  communicate 
the   facts   to   the  Attorney  General,   who  shall 

46 


thereupon    institute    such    proceedings    against 
the  corporation  as  the  nature  of  the  ease  may 
require.     (Section  13^  Trust  Company  Act.) 
REVOCATION      ^^  *^^  Auditor  shall  at  any  time 
OF  have    satisfactory   evidence    that 

CERTIFICATE  ^^^  annual  statement  or  other 
report  required  or  authorized  by  this  Act,  made 
or  to  be  made  by  any  officer  or  officers  of  such 
corporation,  is  false,  it  shall  be  the  duty  of  the 
said  Auditor  to  immediately  revoke  the  cer- 
tificate of  authority  granted  on  behalf  of  such 
corporation,  and  mail  a  copy  of  such  revocation 
to  said  corporation  and  the  clerk  of  every 
court  of  record  in  this  State.  Such  revocation 
shall  not  be  set  aside  until  satisfactory  evidence 
shall  be  given  to  said  Auditor  that  such  corpo- 
ration is,  in  substance  and  in  fact,  in  the  con- 
dition set  forth  in  such  statement  or  report,  and 
that  all  the  requirements  of  this  Act  have  been 
complied  with.  Such  revocation  shall  be  suffi- 
cient cause  for  the  removal  of  such  company 
from  any  appointment  held  by  it  under  the  pro- 
visions of  this  Act.  (Section  14,  Trust  Com- 
pany Act.) 

47 


PENALTY  ^^y  violation  of  any  of  the  pro- 

visions of  this  Act  shall  subject 
the  party  violating  the  same  to  a  penalty  of 
$500  for  each  offense^  and  the  additional  sum 
of  $100  per  day  during  which  any  such  com- 
pany shall  fail  to  file  its  said  report  after  the 
last  day  of  January  in  each  year.  (Section  15^ 
Trust  Company  Act.) 

Pggg  There    shall    be    paid   by    every 

company  to  whom  this  Act  shall 
apply,  the  following  fees:  For  filing  the  orig- 
inal application  and  receiving  the  deposit  re- 
quired by  section  six  of  this  Act,  the  sum  of 
$30;  for  filing  the  annual  statement  required, 
$10;  for  the  certificate  of  authority,  $2;  for 
every  copy  of  a  paper  filed  in  the  Auditor's 
office,  the  sum  of  20  cents  per  folio;  for  affixing 
the  seal  of  said  office  to  said  copy,  certifying 
the  same,  $1.  (Section  17,  Trust  Company 
Act.) 

RETIRING  ^^y   company  which   desires   to 

FROM  retire   from   business   under  this 

BUSINESS  ^^^^  gjj^jj  furnish  to  the  Auditor 

satisfactory    evidence    of    its    release    and    dis- 
48 


charge  from  all  the  obligations  and  trusts  here- 
inbefore provided  for^  whereupon  he  shall 
revoke  his  certificate  to  such  company,  and  re- 
turn its  securities.  (Section  18,  Trust  Com- 
pany Act.) 


49 


INDEX 

STATE    BANKS. 

PAGE 

Application  to  organize 6 

Auditor,  compensation  of    30 

Business,  change  of  place   23,  28 

By-Laws    8 

Capital,  increase  or  decrease  of 23,  28 

Capital  stock,  amount  of    18 

Capital  stock,  impairment  of    19 

Certificate  of  authorization   11 

Claims,  presentation  of  and  payment  of  ...  30 

Directors,  election  of 6,  7,  9 

Directors,  liable  for  illegal  loans    17 

Directors,  qualifications  of   9 

Dissolution    20 

Elections,    6,  7,  9 

Examinations     14 


51 


PAGE 

Examiners^  compensation  of 15 

Examination  prior  to  opening 11 

Liability  of  stockholders 12 

Liabilities,  total  of    16 

Liquidation    29 

Liquidation,  deposits  for  purpose  of 29 

Loans,  limitations  and  restrictions ...  1 6,   17,   18 

Management    5 

Meetings  of  directors    10 

Name,  change  of 23,  28 

Oath  of  office   8 

Organization   5 

Powers    5 

Real  estate    15 

Receiver     20 

Report  of  liquidated  banks    22 

Reports    13 

Reports,  penalty  for  neglect   14 

Reports,  publication  of 14 


52 


PAGE 

Shares    5 

Statements,  false    10 

Stockholders'  liability^  enforcement  of   ....  22 

Stockholders'  liability    12 

Stockholders,  list  of,  to  be  recorded 12 

Subscription  to  stock .  6 

Vacancies     9 

Voting    7 

TRUST    COMPANIES. 

Auditor,  communications  from    42 

Authorization  by  auditor 39 

Bonds,  certification  of 38 

Bonds,  reduction  of   33 

Bonds,  not  required 34 

Certificate,  revocation  of 47 

Certification  of  bonds,  etc 38 

Compensation  of  company    35 

Court  funds    32 


53 


PAGE 

Deposits,  limitation  of 34 

Deposits  with  auditor   35 

Examinations     43 

Fees  to  auditor 48 

Fees  for  titles  and  appraisals    38 

Fees  for  examinations   44 

Interest    34 

La-y,  violations  of 46 

Liquidation    48 

Loans,  limit  of 34 

Mortgage   loans    38 

Penalties    48 

Powers  and  privileges    31 

Reports     39,  42 

Securities,  exchange  of    36 

Securities,  increase  or  decrease  of 37 

Securities,  interest  on    37 

Statements,  publication  of    45 

Unlawful  banking    45 


54 


OFFICERS 


Edward  Tilden 

President 

John  Fletcher 

Vice-President 

Geo.  M.  Benedict 

Casliier 

J.  C.  Morrison 

Assistant  Cashier 

H.  P.  Gates 

Assistant  Cashier 


^x 

DIREC  TORS 

Edward  Tilden 

Wm.  A.  Tilden 

L.  B.  Patterson 

John  Fletcher 

AveriU  Tilden 

*  ^x  /<co/o 


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